High Stockpiles, Firm Prices Drag Coal Imports Down 8.5% In February

High stockpiles and stable prices contributed to an 8.5% year-on-year decline in India's coal imports during February. The total reached 16.55 million tonnes, suggesting a decreased dependence on imported coal.

The decline was largely caused by the availability of large domestic coal inventories and strong overseas prices, leading to a decrease in imports.

On a month-on-month basis, imports remained largely stable, at 16.64 million tonnes in January 2026.

What Is Driving The Decline In Imports?

The drop in imports stems from a robust domestic supply and shifts in pricing.

Domestic miners' substantial stockpiles have lessened the demand for further imports. Simultaneously, robust prices for coal on the global market have diminished the appeal of bringing in supplies from abroad.

Domestic producers are also focusing on reducing excess inventory, which is expected to keep import demand subdued in the near term.

How Do Import Trends Look Across Segments?

February's non-coking coal imports fell to 9.80 million tonnes. This represents a decrease compared to the 11.08 million tonnes brought in during the corresponding month of the previous year.

There was a slight increase in coking coal imports to 3.92 million tonnes as compared to 3.79 million tonnes a year ago.

In the case of the April-February period, the non-coking coal imports decreased from 137.60 million tonnes compared to 152.26 million tonnes imported during the same period in 2024-25, whereas the coking coal imports increased.

Coking coal imports, however, increased to 54.31 million tonnes during April–February 2025–26, compared to 49.62 million tonnes in the corresponding period last year.

What Is The Domestic Supply Position?

Domestic coal production in India has been robust to sustain the demand. The total coal production in 2024-25 was more than 1,047.523 million tonnes, an increase of approximately 4.98% compared to 997.826 million tonnes in 2023-24.

There were approximately 55 million tonnes of coal in inventories in thermal power plants, which is enough to last approximately 24 days of consumption according to the current consumption rates.

Officials have indicated that there is no shortage risk for power generation, even amid rising summer demand.

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What Does This Mean For Investors?

For investors, the decline in imports signals a boost in domestic supply, reducing reliance on the global coal markets.

Companies such as Coal India stand to benefit from consistent demand, bolstered by robust domestic consumption, assuming production levels are adequate.

Meanwhile, global pricing and inventory control will continue to be important elements to observe. Investors should observe power industry demand and price trends in the next few months.

Sources:

The Economic Times

Deccan Chronicle